AudioCodes
Market Cap
US$1.1b
Last Updated
2021/01/27 23:27 UTC
Data Sources
Company Financials +
Executive Summary
AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers. More Details
Snowflake Analysis
Flawless balance sheet with solid track record.
Similar Companies
Share Price & News
How has AudioCodes's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AUDC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: AUDC's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-3.1%
AUDC
1.5%
US Communications
-2.7%
US Market
1 Year Return
39.8%
AUDC
4.3%
US Communications
21.2%
US Market
Return vs Industry: AUDC exceeded the US Communications industry which returned 1.7% over the past year.
Return vs Market: AUDC exceeded the US Market which returned 24.3% over the past year.
Shareholder returns
| AUDC | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.1% | 1.5% | -2.7% |
| 30 Day | 8.8% | 4.8% | 1.8% |
| 90 Day | 7.1% | 31.3% | 16.4% |
| 1 Year | 41.1%39.8% | 7.3%4.3% | 23.9%21.2% |
| 3 Year | 320.4%302.2% | 19.2%10.7% | 43.7%34.2% |
| 5 Year | 658.8%625.8% | 107.2%83.7% | 124.3%99.2% |
Long-Term Price Volatility Vs. Market
How volatile is AudioCodes's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
AudioCodes Ltd.'s (NASDAQ:AUDC) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?3 weeks ago | Simply Wall St
We Like These Underlying Trends At AudioCodes (NASDAQ:AUDC)1 month ago | Simply Wall St
AudioCodes (NASDAQ:AUDC) Seems To Use Debt Rather SparinglyValuation
Is AudioCodes undervalued compared to its fair value and its price relative to the market?
36.01x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AUDC ($31.21) is trading above our estimate of fair value ($24.85)
Significantly Below Fair Value: AUDC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AUDC is good value based on its PE Ratio (36x) compared to the US Communications industry average (44.6x).
PE vs Market: AUDC is poor value based on its PE Ratio (36x) compared to the US market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: AUDC is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: AUDC is overvalued based on its PB Ratio (4.9x) compared to the US Communications industry average (2.7x).
Next Steps
Future Growth
How is AudioCodes forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
21.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AUDC's forecast earnings growth (21% per year) is above the savings rate (2%).
Earnings vs Market: AUDC's earnings (21% per year) are forecast to grow slower than the US market (21.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AUDC's revenue (10.1% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: AUDC's revenue (10.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AUDC's Return on Equity is forecast to be high in 3 years time (21.4%)
Next Steps
Past Performance
How has AudioCodes performed over the past 5 years?
16.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AUDC has high quality earnings.
Growing Profit Margin: AUDC's current net profit margins (12.3%) are higher than last year (2%).
Past Earnings Growth Analysis
Earnings Trend: AUDC's earnings have grown by 16.7% per year over the past 5 years.
Accelerating Growth: AUDC's earnings growth over the past year (581%) exceeds its 5-year average (16.7% per year).
Earnings vs Industry: AUDC earnings growth over the past year (581%) exceeded the Communications industry -0.1%.
Return on Equity
High ROE: AUDC's Return on Equity (13%) is considered low.
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Financial Health
How is AudioCodes's financial position?
Financial Position Analysis
Short Term Liabilities: AUDC's short term assets ($203.6M) exceed its short term liabilities ($94.8M).
Long Term Liabilities: AUDC's short term assets ($203.6M) exceed its long term liabilities ($53.5M).
Debt to Equity History and Analysis
Debt Level: AUDC's debt to equity ratio (0.6%) is considered satisfactory.
Reducing Debt: AUDC's debt to equity ratio has reduced from 9.7% to 0.6% over the past 5 years.
Debt Coverage: AUDC's debt is well covered by operating cash flow (3206.3%).
Interest Coverage: AUDC earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is AudioCodes's current dividend yield, its reliability and sustainability?
0.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AUDC's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: AUDC's dividend (0.9%) is low compared to the top 25% of dividend payers in the US market (3.87%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, AUDC has been paying a dividend for less than 10 years.
Growing Dividend: AUDC's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.3%), AUDC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AUDC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.3yrs
Average management tenure
CEO
Shabtai Adlersberg (67 yo)
28yrs
Tenure
US$2,355,370
Compensation
Mr. Shabtai Adlersberg serves as the Chief Executive Officer of AudioCodes, Inc. Mr. Adlersberg co-founded Audiocodes Ltd. in 1993 and has been its Chief Executive Officer and President since 1993. Until D...
CEO Compensation Analysis
Compensation vs Market: Shabtai's total compensation ($USD2.36M) is about average for companies of similar size in the US market ($USD2.37M).
Compensation vs Earnings: Shabtai's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 28yrs | US$2.36m | 14.36% $ 155.0m | |
| CFO & VP of Finance | 4.5yrs | US$705.66k | no data | |
| Vice President of Marketing | 7.25yrs | US$505.41k | no data | |
| Chief Business Officer & Director | 2.5yrs | US$1.04m | no data | |
| Chief Operating Officer | 3yrs | US$302.12k | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Chief Legal Officer & Company Secretary | no data | no data | no data | |
| Vice President of Human Resources | 20.83yrs | no data | no data |
7.3yrs
Average Tenure
51yo
Average Age
Experienced Management: AUDC's management team is seasoned and experienced (7.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 28yrs | US$2.36m | 14.36% $ 155.0m | |
| Chief Business Officer & Director | 2.5yrs | US$1.04m | no data | |
| Independent Chairman of the Board | 8.08yrs | no data | no data | |
| Independent Outside Director | 21yrs | no data | no data | |
| Independent Outside Director | 24yrs | no data | no data | |
| Independent Director | 6.92yrs | no data | no data | |
| Independent Director | 17.58yrs | no data | no data |
17.6yrs
Average Tenure
63yo
Average Age
Experienced Board: AUDC's board of directors are seasoned and experienced ( 17.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.9%.
Top Shareholders
Company Information
AudioCodes Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: AudioCodes Ltd.
- Ticker: AUDC
- Exchange: NasdaqGS
- Founded: 1992
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$1.079b
- Shares outstanding: 32.75m
- Website: https://www.audiocodes.com
Number of Employees
Location
- AudioCodes Ltd.
- 1 Hayarden Street
- Airport City
- Lod
- 7019900
- Israel
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AUDC | NasdaqGS (Nasdaq Global Select) | Yes | Ordinary Shares | US | USD | May 1999 |
| AU1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 1999 |
| AUDC | TASE (The Tel-Aviv Stock Exchange) | Yes | Ordinary Shares | IL | ILS | May 1999 |
Biography
AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/27 23:27 |
| End of Day Share Price | 2021/01/27 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.